Chris Lombardi puts defense and security under the spotlight, as he shares his takes on recent NATO and EU cooperation and provides insight into the company’s own long-term strategic partnerships in Europe.

Three trends are currently driving the global electricity sector: decarbonization, decentralization and differentiation. Utilities are making significant contributions to mitigate carbon emissions, while a technology revolution is …

A tailored programme for Greek growth

Is this Greece’s last chance? The government of Prime Minister Antonis Samaras has a very narrow window of opportunity to demonstrate Greece’s willingness to continue on the reform path. One of the biggest European myths in this context is that the Greeks ‘have done nothing’. They have done a lot. If Germany or France were to undertake similarly far-reaching reforms, there would be riots in the streets of Berlin or Paris. Let’s give the Greeks the credit they deserve.

Reforms, though, must contribute to real economic growth. The troika of international institutions overseeing international support for Greece – the European Commission, the European Central Bank and the International Monetary Fund – has so far merely pulled out its textbook reform agenda for failed states and ticked off the boxes.

But Greece needs a tailored programme. Just two of many examples of why the troika is wrong: Firstly, when an economy is already in a severe downturn, it does not help to lower the minimum wage. Rather than boosting competitiveness, it reduces consumption. Secondly, raising VAT cuts consumption again. Where do they expect growth to come from?

This is why Greece’s new government should strategically focus on three identified areas in which quick wins are possible. Firstly, it should reduce the number of ministries, decentralise the administration and – most importantly – re-reform the current licensing system of EU projects. According to the Commission, Greece still has €12 billion of structural funds available to it. These funds have already been allocated but the projects are struggling, partly because of red tape. The central state has to give more power to the regions. The centralism is largely responsible for the country losing competitiveness and not getting on with reforms. My appeal to Samaras: expand the powers of the regional governors, the so-called ‘peripheriarchs’. They know best what is wrong in their areas.

Secondly, the European Investment Bank – possibly, jointly with Germany’s equivalent, Kreditanstalt für Wiederaufbau – should help create and fund a development bank for small and medium-sized enterprises. Greek businessmen are known for their good ideas and commitment to realise them – unfortunately, they struggle getting loans to put their ideas into working business models.

Thirdly, the new government should focus on taxes, taxes, taxes. It should not only introduce a flat tax (because this has the power to close down all loopholes), but also co-ordinate with other European states to clamp down on European tax evasion. This is evidently not just a Greek problem: the European shadow economy is estimated to amount to €2 trillion.

In addition to these specific measures, the coalition government should present a clear vision of where these reforms will lead the country. The Greeks are patriots and will support reforms, if reliable, constructive and promising. This is my own vision: Greece as a sustainable, green and clean economy that rewards creativity, provides real life-chances for its people, and uses information technology to create an efficient administration.

Greece’s election on 17 June has created some pro-European momentum. Greece and Europe should not waste that momentum. The Greeks need a positive sign from Brussels, in the form of adjustments to the memorandum that sets the terms of support from the troika.

Technically, this would be easy. Every three months, the adjustment programme could be modified on the basis of the troika’s evaluation missions. Otherwise, the window of opportunity to save Greece – and, with it, the euro – might close. This time for good.

Jorgo Chatzimarkakis is a German Free Democrat and a Liberal member of the European Parliament.